Chapter 15 Financing II: Primary ans Secondary Markets Flashcards
Agent who brings together lender and borrower for a fee
Mortgage Broker
bridge or swing loan for shot term financing before a sale (seller may find it necessary to borrow money to purchase new home while selling current home)
Interim financing
cooperative organization for members who save and borrow
Credit Union
Federal Home Loan Mortgage Corporation; warehouses packages of mortgage
Freddy Mac (government)
A privately owned corporation that sets standards and buys mortgages
Fannie Mae
Government national mortgage association; pools mortgages for Investors
Ginnie Mae
Mortgage that provides possibility for further borrowing. Is used for additional funds to improve the property
Open end Mortgage
mortgage covering both real and personal property
Package Mortgage
agent who makes real estate loans
Mortgage Banker
Loans higher than those usually bought by the secondary market
Jumbo loans
mortgage covering more than one parcel of real estate Is used to finance Subdivisions developments with a partial release clause
Blanket mortgage
additional financing for home owners; usually a type of second mortgage
Home Equity Loans
Straight loan for short building period
Construction loan
percentage of income borrower may spend on housing expense
Qualifying Ratio
arrangement by which seller becomes tenant
Sale-leaseback
allows the seller to collect a mortgage from the buyer while continuing to make payments on the old loan
wraparound Mortgage
lending institutions that make mortgage loans the public
Primary Mortgage Market
regulates Consumer Loans
Truth in Lending Act
loan in which investors shares payments and profits
Shared equity mortgage
Loan not intended for resale on the secondary market (jumbo)
Portfolio Loan
words in an ad that require full disclosure of Financing conditions
Triggering term
mortgage in which lender sends regular checks building up debt
Reverse Mortgage
process on deciding whether to make (Approved) specific loans
Underwriting
Implements the Truth in Lending Act
Regulation Z
Seller Financing
Purchase money Mortgage
detailed loan cost
Loan Estimate ( LE )
required items before lender can proceed
ALIENS ( Address, Loan amount, Income, Estimated property Value, Name, Social Security)
Merges TILA and RESPA disclosures
TRID
was created to ensure that buyers and sellers in residential real estate transaction involving new mortgage have knowledge of all settlement cost
( RESPA ) Real Estate Settlement Procedure Act
